- TikTok recently held its first summit for US e-commerce partners.
- The company spent a lot of time encouraging TikTok Shop partners to test direct sales.
- Attendees with expertise in China’s TikTok sister app, Douyin, shared insights.
TikTok is gearing up for the holiday season on its e-commerce platform, TikTok Shop.
A few weeks ago, around the first anniversary of the product launch in the US, TikTok gathered about 300 Store partners in 200 agencies in a hotel near its office in Culver City, California, for the first partner-only summit event.
The group attended panels, participated in feedback sessions with TikTok staff, and shared ideas on influencer affiliate marketing and paid and earned media tactics. But direct sales were a clear focus at the event, five partners in attendance told Business Insider. Throughout the session, TikTok staff and agency partners talked about how to find studio space for live streams, as well as what it takes to build a live sales operation.
“Probably 60% to 70% of the discussion is around the livestream,” says Jake Bjorseth, founder of marketing firm Trndsttrs, who attended the summit.
A second couple who attended the event described the content as “life, life, life.” This person, as well as several others, has been granted anonymity to protect their business relationship with TikTok. His identity is known to BI.
Why is TikTok so focused on live streaming on top of its first US Store partner?
Well, for one, TikTok has had blockbuster live sales events in the US and UK this year, where companies like beauty brand P.Louise and Stormi Steele’s Canvas Beauty sold over $1 million worth of goods in one. stream, according to the platform.
The invitation list for the meeting can also play a role in focusing the discussion on direct sales. Some of the attendees were partners with expertise in selling TikTok’s Chinese sister app, Douyin, which generates hundreds of billions in sales each year, primarily through influencer direct streams. These partners offer advice on what’s good for social shopping in Asia and discuss potential cross-border partnership opportunities, three Shop partners in attendance told BI.
A TikTok spokesperson declined to comment for this story.
What works on Douyin doesn’t have to go on TikTok Shop
Successful strategies in Douyin often end up in the next TikTok, and the two companies, which operate independently of their parent company, ByteDance, have shared ideas lately.
Last month, Douyin and ByteDance invited TikTok Shop partners to visit the Chinese cities of Shanghai and Hangzhou to meet regional social commerce partners and see the studios they use to record shopping content. Digital advertising firm adQuadrant was among several companies selected for the visit, according to its CEO, Warren Jolly, who spoke at a meeting of TikTok’s US partners.
Of course, direct selling tactics on Douyin won’t necessarily translate to TikTok in the US. Social shopping has been sluggish to take off in North America compared to Asia, as bringing consumer shopping behavior across borders can be difficult.
“If you’ve lived in China, you’re from China, you’ve built this business over the last seven years focusing on direct shopping and social commerce,” Jolly said. But he added that expertise in selling in China may not help U.S. sellers face the different realities of e-commerce. “Yes, direct shopping is important. We understand that it will become pervasive in the Western world and the US market.
Another TikTok Shop partner who spoke with BI agreed that the emphasis on live streams and comparisons to the Asian market on the show is not very useful when most of their TikTok Shop sales now come from influencer videos rather than live streams.
“I can tell we’re out of it [summit] and they said, ‘Oh, that’s a great opportunity in livestream,’ but the finances really don’t make sense for most agencies,” Bjorseth said.
TikTok’s ability to replicate Douyin’s direct shopping success in the U.S. may prove difficult, though the company has been outpacing its e-commerce rivals in sales and repeat purchases in recent months. E-commerce in the US is dominated by non-social-media players such as Amazon and Walmart, both of which work with influencers in direct streams or affiliate programs but primarily drive sales through other means.
Still, there are some signs that livestream shopping is on the rise outside of Asia. Whatnot, a live shopping platform in North America and Europe, said in an October report that it has surpassed $2 billion in merchandise volume from livestream sales made in 2024.
Ultimately, however, TikTok’s e-commerce momentum may suddenly be cut short. The US divest-or-ban law passed in April could force the sale or ban of the TikTok app in the US. TikTok is challenging the law in court. Some attendees said the prospect of a ban was not brought up at the company’s TikTok Shop partner meeting.